In a significant move to ensure citizen’s participation in pivotal decisions, the Alberta government has spearheaded legislation hinting at a possible referendum on exiting the Canada Pension Plan (CPP). However, the legislative provision does not obligate the government to respect the outcome of the electoral exercise.
The pending Alberta Pension Protection Act underscores the requirement of a referendum for the province to walk away from the CPP. Nevertheless, the decision to host a binding referendum will be determined by the government if the deliberation to withdraw from the plan ensues.
As explained by Finance Minister Nate Horner, an early commitment to a binding referendum would be hasty. Keeping room for flexibility for future governments, Horner emphasizes their urgency to facilitate a referendum process.
In assurance to Albertans, Horner insists that, premature presumption about the specifics of a referendum isn’t the focus as of now. The decision on such matters, in the course of any government regime, will be taken at an opportune time.
Responding to concerns over the government’s contemplated exit from the pension plan, Horner promises the priority of Albertans’ well-being. Dismissing criticisms as political ploys attempting to disrupt the dialogue, Hornet assures no definitive course will be followed without the backing of Albertans.
The proposed legislation details that once a government mandates a referendum, additional information like the referendum question, the binding nature of the vote, the possibility of mail-in ballots, and any simultaneous elections will be decided on. Moreover, if Alberta develops its pension plan, it must match the benefits and contribution rates of the CPP.
However, the utilization of any potential investment returns remains undecided. The future investment objectives will be determined by Albertans, ranging from sole focus on profit generation to a design similar to the Quebec pension scheme which channels investments into the provincial economy.
Regardless of the criticism drawn by the Quebec model for risking provincial investments into private ventures or the local oil and gas industry, Horner believes the Albertans will decide the course of the provincial plan. A shift from his previous commentary, which ruled out the Quebec model and promised separate legislation confirming the same, he now states every option is on the table.
The government aims to rely on various sources, such as poll results and feedback from a public panel led by former Treasurer Jim Dinning, to evaluate public sentiment towards a referendum. The potential referendum initially envisaged for 2025 is now uncertain as Premier Danielle Smith insists on acquiring a concrete figure on the province’s owed amount from the CPP before proceeding with the referendum.
As the province claims to be due $334 billion, over half of all CPP assets, economists and the CPP Investment Board counter the figure closer to Alberta’s representation in the CPP population, which is 15 per cent. A failure to reach a consensus on the owed figure may prolong the dispute and require legal intervention.
The proposed exit from CPP has generated apprehension nationwide. Consequently, Federal Finance Minister Chrystia Freeland has called for a virtual assembly of provincial and territorial finance ministers to deliberate on the Alberta exit proposition.
Alberta’s exit move has attracted criticism from multiple quarters, including the Opposition NDP and the Canada Pension Plan Investment Board. The evidential objection lies in the perceived use of doubtful data to convince Albertans to support the exit and provincial plan.
Complicating the scene further, the fluctuating figures narrated by Premier Smith about public participation in the 2019 Fair Deal panel discussions bring added confusion. After reiterating different numbers of attendees at various junctures, Smith has not provided a clarifying statement on the current number of 350,000 she has presented.
